SRED Tax Consultants | Conceptinero | Ontario | https://conceptinero.com
Your company could be eligible for the incentives offered to technology companies by the Canadian government. The government’s goal is to help drive innovation and encourage research and development. With access to the Scientific Research and Experimental Development (SR&ED) Programme, you can discover a generous federal tax incentive program that provides over $3 billion in federal government funding annually to qualified Canadian scientific and technological research projects.
Both Canadian Controlled Private Corporations and individuals owning businesses conducting such projects can claim SR&ED qualifying expenditures. By filing an income tax return with the Canada Revenue Agency (CRA) and including a completed Form T661 you provide the necessary technical information the government uses to calculate the investment tax credit. One of the easiest ways to find out if you qualify is to speak to a SR&ED consultant. However, here we review the application process for the SR&ED program to help familiarize you with the requirements.
If your business is overseeing qualified Canadian SR&ED projects, you can claim SR&ED tax credits when you file your income tax return. Your SR&ED expenditures must be filed no later than 12 months after your filing deadline. You also must complete and submit the following CRA SR&ED forms:
For detailed information on filing requirements, you can review the SR&ED Filing Requirements Policy here. You must ensure you provide information showing you are an eligible SR&ED candidate, including detailed project information.
When you wish to claim your SR&ED expenditures you can choose to list the 20 largest projects in dollar value in Part 2 of the form. However, even if you do just the 20, you are still required to complete all projects claimed in Part 2 of the form and keep it at your place of business so it is available should the CRA request to see it. You must include the cost of every project claimed in Part 6 of the Form T661. If you are unable to do so you will be denied all amounts claimed for the project as SR&ED expenditures. Providing evidence of your expenditures helps avoid issues when claiming SR&ED expenditures.
Having documents relating to the SR&ED activities such as individual timesheets allocating work spent on SR&ED and non-SR&ED work, supervisors’ summaries regarding R&D team activities over a given period, resource planning, etc. all help support the work and costs required during the project. Copies must be readily available to share in the case of a CRA audit. Therefore ensuring detailed records are kept and maintained is important to support your claim. Keep in mind how you choose to fill out Part 2 of the T661 form varies based on how you conduct your business. While some choose to go with a single project, others might have expenditures across multiple projects and fill out multiple T661 forms.
To qualify, you will also have to provide details about the scientific or technological content of your work which should include:
Your T661 is filed each year, even if your project spans over several years. You can either file the claim with your original tax submission for a fiscal period or choose to wait and then submit an amendment to your taxes. If you choose the amendment option, it must be completed no longer than 18 months following the end of the fiscal year when the expenses were incurred.
If you would like the assistance of a SR&ED consultant, speak to our team today.
We are a full-service professional SR&ED Consulting Firm specialized in the Medical Science, Software and Manufacturing industries. We have a 95% success rate in getting CRA to refund up to 65% of your research and development costs.
We engage with you to assess the technical and financial viability and make sure your claim gets approved by CRA without an audit. We have submitted $50M in claims to the CRA. Over 320 claims were accepted as filed, for an average $146,000 per company.
Unlike larger SR&ED consulting firms, we offer full service from an individual consultant who gets to know your team and fully manages your CRA claim. We don’t expect you to do the heavy lifting, which means maximum results with minimal input from your team so you can focus on your business.
get a free strategy session 5 tips to successfully apply for SR&ED Canada Tax Credit “You are young and life is long and there is time to kill today. And then one day you find ten years have got behind you. No one told you when to run, you missed
get a free strategy session How to Fund your R&D with SR&ED Financing If your company is located in Canada and has research and development (R&D) aims, then you’ll be pleased to know that the government of Canada provides very generous support for research and innovation. The Scientific Research and
get a free strategy session How to track Financial Documentation for SR&ED The Scientific Research and Experimental Development (SR&ED) Program is a federal tax incentive program that encourages Canadian business to reach technological advancement by conducting systematic investigation when they are faced with technological uncertainty. The Canada Revenue Agency (CRA)
get a free strategy session Overhead Cost in SR&ED: traditional method and proxy method If your company is located in Canada and is trying to improve a product or process, then it may benefit from government funding. The federal government offers tax credits for your research cost through the Scientific
get a free strategy session Software Development Sub-contractors: Who can make a SR&ED claim? The development of new software products often requires hiring contractors to leverage skill sets not always available within a company. Software development companies have a choice to perform the research in-house, sub-contract out the Scientific Research
get a free strategy session Software Development and SR&ED Time Tracking Companies can claim up to 68% of R&D costs from the Canada Revenue Agency to support your software research and development projects. However, without proper records, it will be difficult to receive a refund from the CRA. This exceptional SR&ED
